Karachi, October 3, 2023 – Bank Alfalah, a leading financial institution in Pakistan, has unveiled plans to establish an exchange company with an authorized share capital of Rs 2 billion.
This strategic move, aimed at diversifying the bank’s financial services portfolio, was announced in a statement released on Tuesday.
In its disclosure to the Pakistan Stock Exchange (PSX), Bank Alfalah revealed that its board of directors, during a meeting held in Abu Dhabi, UAE, on October 3, 2023, had granted approval for the establishment of an exchange company. This new venture is intended to operate in accordance with the regulatory framework prescribed by the State Bank of Pakistan (SBP), the country’s central bank.
The bank’s statement outlined that the board’s approval includes setting up the exchange company with an authorized share capital of Rs 2 billion, which will be divided into 200 million ordinary shares with a nominal value of Rs 10 each. This substantial capitalization signifies Bank Alfalah’s commitment to establishing a robust and well-funded entity in the exchange business.
However, it’s important to note that the actual launch of the exchange company is contingent upon receiving approval and clearance from the State Bank of Pakistan, as well as meeting all other regulatory compliance requirements stipulated by the authorities.
Once operational, the exchange company will function as a wholly owned subsidiary of Bank Alfalah. It will be structured to operate within the framework prescribed by the State Bank of Pakistan, ensuring that all activities are carried out in accordance with regulatory guidelines and best practices.
Bank Alfalah’s foray into the exchange company sector represents a strategic move to diversify its financial services and offer a broader range of solutions to its customers. This announcement reflects the bank’s commitment to adapt and expand its operations to meet evolving market demands and serve its clientele more comprehensively.
As the bank progresses with its plans and seeks regulatory approvals, the financial industry and stakeholders will closely watch the development of this new venture and its potential impact on Pakistan’s financial landscape.
